PESHAWAR, Dec 6: The Afghan national currency — afghani — underwent major slide in its exchange value against Pakistani rupee as small investors went for panic selling, according to market sources.

Despite the fact that on Wednesday afghani to Pakistani rupee had ended at a respectable note with Re1 equal to 558.7 afghani, the Afghan currency resumed the day on Thursday with shaky start.

At the early trading Re1 was equal to 671 afghani, recording a slide by Rs112 in comparison with the last night parity. Later, the afghani recovered some ground by 2:00 pm — normally when big dealers strike future deals (sitta) and trade the currency notes in accordance with their last day’s business deals under the sitta.

By 2:00 pm Pakistani rupee to afghani parity was at Re1 to 636.9 afghani. However, the increase appeared to be short-lived, according to market forces, as a couple of big dealers started selling their stocks of afghani currency bills, causing several among the small investors to follow the suit.

Market forces attributed the panic selling to rumours that Hamid Karzai, chairman, designate of the interim Afghan set-up, got injured as a result of US bombing.

Similarly, the Northern Alliance having secured majority of the ministerial offices, especially the defence, interior and foreign affairs in line with the Bonn summit also affected the market sentiments, causing slowdown as far as afghani exchange value to Pakistani rupee is concerned.

A currency dealer of the Peshawar’s Chowk Yadgar, requesting anonymity, attributed the afghani’s slowdown to the availability of afghani currency bills in abundance in the local market.

“There are more people who are interested in selling (afghani) than those who are making purchases,” said Haji Khan, another currency dealer.

There were also reports that huge stocks of afghani bills had been injected in the local market after big currency dealers diverted their investments from the currency markets of Kabul and Kandhar.

Afghani to Pakistani rupee, however, settled at Re1 to 629 afghani, recording marginal improvement in comparison with the rates prevalent at 2:00 pm on Thursday.